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The Star
2 days ago
- Business
- The Star
Updated MCCG to be issues in 2026, focusing on board quality and effectiveness
KUALA LUMPUR: An updated iteration of the Malaysian Code on Corporate Governance (MCCG) will be issued in 2026, revisiting matters that help with board quality and effectiveness as well as strengthening the board's role in long-term value creation. Securities Commission (SC) chairman Datuk Mohammad Faiz Azmi said the SC is undertaking a review of the MCCG as part of its Capital Market Masterplan review. "We will be engaging stakeholders later this year through targeted discussions and consultations on where we are and what we can do better. "This consultative approach ensures any revisions to the code remain relevant and impactful,' he said in his opening address at the ASEAN Corporate Governance Conference 2025 here today. According to him, the SC is prepared to make certain elements of the upcoming MCCG (MCCG 2026) mandatory if doing so would help corporates demonstrate stronger governance and deliver better results. He noted that MCCG has long served as a key tool to drive good corporate conduct but it must be continuously updated to ensure it fits current international standards and practices, as well as local needs. "The current iteration is MCCG21, which had for the first time included best practices for board diversity and environmental, social and corporate governance (ESG). The next one will be issued in 2026,' he said. Mohammad Faiz said ASEAN countries, including Singapore, are understood to be embarking on similar exercises this year, which highlights a shared recognition that regulatory frameworks must continue to evolve to meet new challenges. "While alignment with global standards and investor expectations remain important, each ASEAN jurisdiction is unique. "Therefore, codes must be tailored to reflect each jurisdiction's unique context, market maturity and strategic priorities,' he said, adding that there is no one-size-fits-all approach in governance. He noted that ASEAN is home to close to 4,500 public-listed companies, with a combined market capitalisation of around US$3 trillion (US$1=RM4.21). Mohammad Faiz also highlighted that the region has a significant opportunity to lead in sustainability, with the potential to generate up to US$1.5 trillion in new value by 2030 through green investments, regional power grid integration, carbon markets, and clean energy incentives. - Bernama
Business Times
17-06-2025
- Business
- Business Times
Malaysia launches Digital Asset Innovation Hub to speed up growth of fintech and blockchain
[KUALA LUMPUR] Malaysia unveiled its Digital Asset Innovation Hub on Tuesday (Jun 17), with an eye on accelerating growth in the digital economy, particularly in the digital finance sector. Prime Minister Anwar Ibrahim, in his speech at the event, described it as the beginning of a new chapter, 'one that calls for deeper collaboration between regulators and industry players'. The innovation hub, unveiled at the Sasana Symposium 2025, aims to provide a controlled environment – a regulatory sandbox – for local and international fintech and digital-asset firms to test their products and services. The symposium on Jun 17 and 18 homes in on pressing economic issues and policy reforms and is hosted by Bank Negara Malaysia in Kuala Lumpur. The participants include policymakers, industry leaders, academics and the business community who are taking part in discussions and workshops. The sandbox-like setup of the hub is aimed at ensuring regulatory compliance and relevance to Malaysia's evolving digital economy. Anwar said the hub would be a key catalyst for innovation, enable use cases such as programmable payments, ringgit-backed stablecoins and supply chain financing. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'Our ambition is clear – to align infrastructure, policy and talent, across both the public and private sectors, in pursuit of a digitally capable, future-ready Malaysia,' he said. Further details on the programme were not disclosed. The move underscores Malaysia's broader ambitions to position itself as a regional fintech hub. In April, Anwar met with Binance founder Changpeng Zhao to discuss the country's potential in the cryptocurrency space. Zhao pleaded guilty to US money laundering violations in 2023, and was reprimanded by Malaysia in 2021. By the following year, however, Binance had secured a regulated presence in Malaysia through its minority stake in MX Global, operating under local oversight. Anwar said that Malaysia is charting a bold course in digital transformation, guided by national strategies such as the Digital Economy Blueprint, the Financial Sector Blueprint and the Capital Market Masterplan. Ensuring stability amid rapid evolution Malaysia is charting a bold course in digital transformation, guided by national strategies such as the Digital Economy Blueprint, the Financial Sector Blueprint and the Capital Market Masterplan. PHOTO: BT FILE Bank Negara governor Abdul Rasheed Ghaffour, in his opening remarks, said as a steward of financial stability, the central bank acknowledges the rapid evolution of the digital asset landscape, so it is pursuing digitalisation to ensure Malaysia's financial system remains fit-for-purpose and capable of serving the national economy. He added: 'From the modernisation of Rentas, our payment systems infrastructure, to the expansion of cross-border payment linkages, and now, the exploration of asset tokenisation and other digital solutions, we aim to build a strong foundation for an adaptive and resilient economy.' Thailand's digital-asset sandbox programmes In a panel discussion on the future of digital assets held on the opening day of the symposium, Naphongthawat Phothikit, senior director of payment systems and financial technology policy department at Bank of Thailand, shared insights on Thailand's digital asset regulatory sandbox programmes and how these have helped fintech companies enhance their marketability while ensuring security. Thailand launched its Digital Asset Sandbox last August, he said. There are two types of sandbox programmes: The first enables service providers to offer conventional financial services using new technologies; the other sandbox will be for unregulated activities, particularly in payments involving stablecoins. Banks testing the use of cryptocurrencies (such as stablecoins) for cross-border fund transfers, for example, would use the first type of sandbox for their trial runs. While their customers still transact in fiat currency, the use of cryptocurrencies would mitigate the risk of price fluctuations and ensures that customers receive the full transferred amount, said Phothikit. (Transactions between Thai and US banks use USDC, a stablecoin with its value pegged to the US dollar.) Another use case entails private-sector banks developing blockchain networks to streamline bond issuance. Through blockchain, they can effortlessly calculate principal and interest, using e-money for payments to bondholders. 'These examples demonstrate the application of new technology within traditional business models,' he added. Referring to the sandbox for unregulated activities, particularly in payments involving stablecoins, he said: 'We have regulations that require stablecoins to be pegged to the Thai baht, but they are not listed on secondary markets.' The sandbox provides a controlled environment to test the functionality and safety of these payment solutions before they are introduced to the wider market, he added.
